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Saturday, June 22, 2013

Leader Charts

It looks like I won't be able to get annotated charts this morning, which is just as well as putting pivot points on these charts has been an eye opener. As you can imagine, the market leaders took a pretty good drubbing this week, with 2 advancing and 18 declining. PRLB was the biggest gainer, with a breakout early in the week followed by a pullback right back to the breakout point. The breakout move stopped cold right at the R2 pivot, and the pullback has so far held the R1 pivot. This might be a pretty good entry point, especially if the market gets a good bounce, but very risky at this point, and probably not worth the effort. under ordinary circumstances I would be all over it.

BOFI was the other gainer, this one being stopped dead by the R1 pivot point. The subsequent pullback has been mild and on declining volume. This is sure looking like a nice bullish consolidation, and it will probably stay in this until the market pulls out of this correction and starts heading up again, and when it does, this may be one of the first out of the gate.
LL had a triple whammy this week: a weak market, a pivot point, and bad news (formaldehyde found in some of their products). This is now below the 50dma, but right at a support level from the April gap. There is no way I am going to bet on that support holding.

LVS was the second biggest decliner. This was already in a down trend, had a weak bounce which stopped right on a pivot point, and subsequently collapsed. It is just about sitting on a potential support level, but judging by the volume on the way down, I think this might be headed for a date with the 200dma. This one is for the professional knife catchers.

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